Camden Lock Ltd has just finished its first year of trading to 31 December 2006. Corporation tax throughout was 40% and income tax 20%. You are given the following information:

(i) Net trading profit, after adjustment for (ii) but before other adjustments, was £390,000.

(ii) Depreciation of £70,000 was charged. Capital allowances were £110,000.

(iii) An interim dividend of 4% on 800,000 £1 ordinary shares was paid on 1 July 2006.

(iv) Loan-note interest of £14,000 (net) was paid on 31 December 2006.

(v) Income tax deducted from loan note interest was paid on 31 January 2007.

(vi) A final dividend of 6% was proposed for the year.

(vii) Corporation tax for the year was estimated to be £145,000.

You are required to:

(a) draw up the double entry accounts recording the above (except bank);

(b) show the relevant extracts from the income statement and the balance sheet.